2018 Q1 Operational Results
The Stable Project team is very pleased to share results of the first quarter of 2018 (Dec 29, 2017 to Mar 30, 2018), as well as an operational update.
The Net Value of Assets per Stable Token (STB NAV) has increased by +16.9% to 38.43 USD in Q1 of 2018. This is encouraging, as it comes in a quarter when the price of 30 biggest tokens by capitalization (representing 90+% of the market) have lost 60% of value, on average. It is important to note that this result has been achieved with no net long or short position in any of the tokens – neither market “timing” nor directional trading has been attempted or performed. The biggest gains in NAV have come from stabilizing the Bitcoin (BTC) market, although substantial positions have been held in Bitcoin Cash (BCH), Cardano (ADA), Ripple (XRP), Monero (XMR) as well as ZCASH. We’ve been active in Global, European and Asian markets.
Similarly to the previous quarter, we have been mostly engaging in price arbitrage by exchange, arbitrage between different fiat-crypto pairs, time-value-of-money arbitrage as well as liquidity providing (market-making). The team has also recognized and successfully traded several new market inefficiencies that have not yet been identified by us or previously described in the Project’s Whitepaper. These include: sub-par efficiency in trading engines of some cryptocurrency exchanges (including performance issues related to order placing and their subsequent modification), as well as inefficiencies in pricing of instruments expiring or being delisted from exchanges.
The project’s risk (as measured by volatility of STB token NAV changes, annualized) after 6 months of operations is just below the middle of the 15-25% range described as optimal and intended in the Project’s Whitepaper.
We have made a steady progress on the operational front:
- The number of markets available to scan for inefficiencies has more than doubled by opening new cryptocurrency exchange accounts,
- We’ve established relationships with two fiat FX brokers which allows us to hedge the FX risk. This enables us to enter even more trades, as one facet of risk is effectively eliminated,
- The banking relationship established in the previous quarter has been thoroughly tested and the extent of services has been expanded,
- The STABLE token (STB) token has been listed on Radex.ai decentralized exchange (peer to peer exchange). Decentralized exchanges are very safe for investors, however they may be difficult to set up for non-advanced crypto investors. You may find more details here:
2017 Q4 Operational Results
The management team is pleased to share the update on Stable project’s operations. Net Asset Value has increased by +14.4%
during the first quarter of operations (Oct 3 – Dec 29, 2017) - to 32.86 USD per one STB token.
Project’s strategies have helped to stabilize markets in multiple tokens, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC) and others. We have been active mostly in strategies such as: price arbitrage, liquidity providing, time-value-of-money arbitrage and market-making. Project's strategies has helped to stabilize European and, to a lesser extent, Asian cryptocurrency markets.
While it is still early to calculate project’s in-market NAV risk after just three months of data, we’re nevertheless encouraged to report that it has been at the lower end of our target 15-25% annualized volatility range. As a comparison, using the same metric, Bitcoin’s risk was ~6 times higher and Ethereum’s as much as ~16 times higher over the past year. We would like to stress that the performance of Stable token was not directly dependent on the increase of Bitcoin or Etereum price. The correlation of price changes during the quarter was close to zero.
We’re steadily progressing with the operational setup. We’ve concluded legal entities setup, established banking and cryptocurrency exchange relationships. Over the next quarter the team's effort will be focused on expanding our operations to more cryptocurrency exchanges and to open new opportunities across more countries, currencies and tokens.